GENOIL INC. ANNOUNCES CLOSING OF OVER-SUBSCRIBED PRIVATE PLACEMENT

TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB

Genoil Inc. (the “Corporation”) is pleased to announce that it has closed the first tranche of the private placement previously announced on September 7, 2006 (the “Offering”). In connection with the closing of the private placement, the Corporation has issued 4,109,589 Units, at a price of U.S. $0.73 per Unit, each Unit consisting of one common share and 0.25 common share purchase warrants (“Warrants”) for total gross proceeds of U.S. $3,000,000. The Warrants are exercisable until two years following their issue date at a price of U.S. $1.10. Additionally, if at any time following the issuance of the Warrants, the 20 day average closing price of the Corporation’s common shares on the OTC bulletin board is greater than U.S. $1.38, the Corporation will be entitled to redeem the Warrants at a price equal to U.S. $0.01 per Warrant. The common shares issued in connection with this private placement are subject to a four-month hold period.

The Corporation is also pleased to announce that the private placement, which was originally announced for U.S. $3,000,000, has been oversubscribed and the Corporation intends to increase the size of the private placement by up to U.S. $1,000,000 to accommodate additional subscribers. The increase in size of the private placement remains subject to receipt of all necessary approvals, including that of the TSX Venture Exchange.

The securities to be issued by the Corporation have not and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

Genoil is a technology development and engineering company providing environmentally sound solutions to the oil and gas industry through the use of proprietary technologies. The Genoil Hydroconversion Upgrader is designed to economically convert heavy crude oil into more valuable light upgraded crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminants.

Genoil’s shares are listed on the TSX Venture Exchange under the symbol GNO, as well as on the OTC Bulletin Board under GNOLF.OB.

For more information on Genoil Inc. visit www.genoil.net
David Lifschultz
Chairman and CEO
(212) 688-8868

ADVISORY: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.